FTC Says Bitcoin ATMs Are Hotbed for Scams

There has been an increase in the incidence of fraud at Bitcoin ATMs, as reported by the Federal Trade Commission (FTC)

These ATMs enable individuals to convert their cash into cryptocurrency; however, they have also functioned as a means for fraudsters to commit fraud. According to the Federal Trade Commission (FTC), the fraud rate at Bitcoin ATMs has increased nearly tenfold since 2020. In the first half of 2024, consumers have lost over $66 million to these schemes.

Scammers employ security alerts, phony phone calls, and messages to persuade individuals that they are in danger and should deposit cash into a Bitcoin ATM to safeguard it. Subsequently, the scammer may distribute a QR code for scanning at the Bitcoin ATM, which will discharge the funds into the scammer’s wallet.

They’ve become a tool for scammers to perpetrate fraud. Since 2020, the Federal Trade Commission (FTC) says, fraud at Bitcoin ATMs has ballooned nearly tenfold, and just in the first half of 2024, consumers have lost more than $66 million to these scams.

Scammers use fake phone calls, messages, and security alerts to convince people they’re in danger and should deposit cash into a Bitcoin ATM to protect it. Then, the scammer may share a QR code to scan at the Bitcoin ATM, which deposits the cash into the scammer’s wallet.